The DivGro Weekly—02.01.26

205 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when we became entitled to our quarterly dividends from FirstService, Stryker and Roper Technologies, all meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 205 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.2%.

FirstService

FirstService, our dominant provider of essential property management and adjacent services in North America (think strata management; pool servicing; paint and restoration etc.) recently celebrated its milestone 30th anniversary. In this time, the company has compounded its sales by an impressive 140x from $37 million to $5.2 billion. How so? While FirstService enjoys the privileged position of scaled market leader, it still occupies approximately only 8% of its total addressable market. This means it has significant room to build upon its impressive growth trajectory and benefit from the upswing of housing units transitioning away from self-management towards professionalised solutions. Given FirstService requires little capital expenditure to fund its organic growth, and its customers are principally tied into long-term service contracts providing predictable and recurring cash flows, the company is ideally positioned to deploy the overwhelming majority of its earnings towards highly accretive acquisitions. Such as? Its new roofing platforms in the Sunbelt and mid-Atlantic — both of which reinforce FirstService’s unique growth opportunities and proven ability to continue to reward shareholders handsomely with annual double-digit percentage dividend increases long into the future.